What is PIP Insurance and Who Needs It?
PIP insurance covers hospital bills, medical bills, lost wages, and other essential services after you’ve been injured in an accident regardless of fault. On average, PIP auto insurance adds $15 a month to insurance policies. However, no extra cost is added for PIP in states that require it as part of the minimum insurance requirements. Shop around and compare multiple insurance companies to secure the most affordable PIP car insurance.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
UPDATED: Nov 27, 2023
It’s all about veterans. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help veterans make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with one auto insurance company and cannot guarantee quotes from any single company. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for veterans interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance-related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about veterans. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help veterans make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with one auto insurance company and cannot guarantee quotes from any single company. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Personal injury protection covers hospital bills and essential services after an accident.
- The average cost of PIP insurance is $15 a month.
- PIP coverage requires a deductible.
Do you live in a state that requires PIP auto insurance?
Personal injury protection (PIP) provides coverage for bodily injury and other injuries that are not usually covered by liability insurance coverages.
But what is PIP coverage? And how much personal injury coverage should I get? Do not worry — we are here to alert you on what you should know.
Our article explains everything you need to know about personal injury protection, how much it costs, and which states require PIP coverage.
Continue reading to learn what PIP insurance covers. If you are ready to compare multiple insurance companies near you, enter your ZIP code in the free online quote tool above.
What is PIP insurance, and who needs it?
PIP is no-fault insurance that covers hospital and medical bills in addition to charges that are not covered by health and auto insurance. PIP coverage pays for personal injury regardless of fault in an accident.
Personal injury protection coverage is required in 17 states, and it is optional in all other states across America. But we recommend that you get PIP insurance to avoid complicated situations that are not covered by car or health insurance.
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What does PIP cover?
PIP car insurance pays bodily injury costs such as hospital bills. But what exactly does personal injury protection cover? Let’s look at the list below:
- Medical/hospital expenses. Pays for the medical and hospital bills of you and your passengers after an accident (it can also cover a health insurance deductible)
- Lost wages. This is described as the money and hours you missed as a result of an accident
- Child care. Child care is one of the essential services that is covered by personal injury insurance
- Funeral expenses. PIP insurance covers funeral expenses for you or other passengers
- Cleaning. If you have been disabled by a car accident, PIP covers cleaning expenses
- Legal fees. Specific legal charges are covered under personal injury protection
- Survivors’ loss. The insurance company replaces the sudden of lost income for your family if you pass away from an accident
There is a limit to how much your car insurance company will cover. For example, Florida’s PIP coverage limit is $10,000. You can request more if you think the minimum requirement is not enough.
States that do not have a specific requirement also carry a $10,000 limit. But to get coverage after an accident, you will need to pay a deductible. Some personal injury insurance deductibles are as high as $1,000.
How much PIP coverage should I get?
We recommend getting $10,000 in personal injury protection coverage. Your PIP insurance can supplement your health insurance, and it even provides coverage for health insurance deductibles.
What does PIP not cover?
Just the name “personal injury protection” sounds like it covers just about anything that liability auto insurance will not cover. However, personal injury protection does not extend coverage to property damage. In other words, PIP insurance will not pay for damage to your vehicle.
Personal injury protection does not pay for injuries of the no-fault driver when you are at fault in a car accident. Also, PIP coverage will not cover damage to another driver’s car. Your liability insurance coverage pays for damage to a no-fault driver’s vehicle.
You will need collision auto insurance if you want coverage for your vehicle regardless of fault. Add comprehensive insurance to get coverage for damage not caused by a collision.
How much does personal Injury protection cost?
PIP insurance is 16.3% of your full coverage auto insurance. According to the National Association of Insurance Commissioners (NAIC), full coverage car insurance is $90 a month. Therefore, PIP coverage should be about $15 per month on average.
So what is personal injury protection like for each state in the nation? Let’s examine the estimates.
Personal Injury Protection Rates by State and Deductible| States | PIP Rates, $0 Deductible, $10,000 PIP | PIP Rates, $250 Deductible, $10,000 PIP | PIP Rates, $500 Deductible, $10,000 PIP | PIP Rates, $1,000 Deductible, $10,000 PIP |
|---|---|---|---|---|
| Alabama | $14 | $13 | $12 | $12 |
| Alaska | $16 | $15 | $14 | $14 |
| Arizona | $16 | $15 | $14 | $14 |
| California | $16 | $14 | $14 | $13 |
| Colorado | $16 | $15 | $14 | $14 |
| Connecticut | $18 | $17 | $16 | $16 |
| District of Columbia | $21 | $19 | $19 | $18 |
| Georgia | $17 | $16 | $15 | $15 |
| Idaho | $11 | $10 | $10 | $9 |
| Illinois | $14 | $13 | $12 | $12 |
| Indiana | $12 | $11 | $11 | $10 |
| Iowa | $11 | $10 | $10 | $9 |
| Louisiana | $23 | $21 | $20 | $20 |
| Maine | $11 | $10 | $10 | $9 |
| Mississippi | $16 | $14 | $14 | $13 |
| Missouri | $14 | $13 | $12 | $12 |
| Montana | $14 | $13 | $12 | $12 |
| Nebraska | $13 | $12 | $12 | $11 |
| Nevada | $18 | $16 | $16 | $15 |
| New Hampshire | $12 | $11 | $11 | $11 |
| New Mexico | $15 | $14 | $13 | $13 |
| North Carolina | $12 | $11 | $11 | $10 |
| Ohio | $12 | $11 | $11 | $11 |
| Oklahoma | $16 | $14 | $14 | $13 |
| Rhode Island | $21 | $19 | $18 | $18 |
| South Carolina | $16 | $15 | $14 | $14 |
| South Dakota | $12 | $11 | $11 | $11 |
| Tennessee | $14 | $13 | $12 | $12 |
| Texas | $18 | $17 | $16 | $15 |
| Vermont | $12 | $11 | $11 | $10 |
| Virginia | $13 | $12 | $12 | $11 |
| Washington | $15 | $14 | $14 | $13 |
| West Virginia | $16 | $14 | $14 | $13 |
| Wisconsin | $12 | $11 | $10 | $10 |
| Wyoming | $13 | $12 | $12 | $11 |
| *National Average* | $16 | $15 | $14 | $14 |
As your deductible increases, your PIP rates decrease. Remember, deductibles are what you have to pay before your insurance coverage kicks in to pay for costs.
Do deductibles affect personal injury protection costs?
Yes, they do. Higher deductibles produce cheaper rates, but they demand costly out-of-pocket expenses. If you manage more expensive rates, get a lower deductible.
Which states require PIP auto insurance?
You may have noticed that some states are not included in the table in the previous sections. That is because some states require PIP coverage. Personal injury protection is connected to liability car insurance states that require PIP.
But which states require PIP insurance? Let’s find out.
States with PIP Insurance Requirements| State | Insurance Required | Limits |
|---|---|---|
| Arkansas | BI & PD liability, PIP | 25/50/25 |
| Delaware | BI & PD liability, PIP | 25/50/10 |
| Florida | PD liability, PIP | 10/20/10 |
| Hawaii | BI & PD liability, PIP | 20/40/10 |
| Kansas | BI & PD liability, PIP | 25/50/25 |
| Kentucky | BI & PD liability, PIP, UM, UIM | 25/50/25 |
| Maryland | BI & PD liability, PIP, UM, UIM | 30/60/15 |
| Massachusetts | BI & PD liability, PIP | 20/40/5 |
| Michigan | BI & PD liability, PIP | 20/40/10 |
| Minnesota | BI & PD liability, PIP, UM, UIM | 30/60/10 |
| New Jersey | BI & PD liability, PIP, UM, UIM | 15/30/5 |
| New York | BI & PD liability, PIP, UM, UIM | 25/50/10 |
| North Dakota | BI & PD liability, PIP, UM, UIM | 25/50/25 |
| Oregon | BI & PD liability, PIP, UM, UIM | 25/50/20 |
| Pennsylvania | BI & PD liability, PIP | 15/30/5 |
| Texas | BI & PD liability, PIP | 30/60/25 |
| Utah | BI & PD liability, PIP | 25/65/15 |
Texas was recently added to the list of states that require PIP. All other states have been included on the list as PIP states.
Because personal injury protection coverage is automatically attached to liability insurance in these states, you will not have to pay extra money for PIP insurance.
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How do I file a personal injury protection claim?
You can file a PIP coverage claim like any car insurance claim. After you have been in an accident, contact your auto insurance company and let them know you want to file a PIP insurance claim.
Once you have your insurance representative or agent on the phone, give them your name and policy number. Tell the representative details while you wait for a law enforcement officer to provide you with a police report.
You will have a chance to file a report by email or phone. Be prepared to send information through fax, email, or by mail.
Do I need PIP coverage if I have health insurance?
Yes, you do.
PIP insurance can supplement car insurance coverage, while health insurance ensures that you maintain your health outside of motor vehicle incidents.
Medical and hospital bills are expensive, and health insurance policies can bring down those costly services by hundreds of dollars, but PIP can offset these costs further and even cover your health insurance deductible.
What’s the difference between medical payments and personal injury protection?
Medical payments, or MedPay, is insurance coverage that pays for medical bills, such as x-rays, co-pays, and other procedures. PIP coverage also pays for medical bills, but it covers different areas as well, such as child care and lost wages.
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MedPay will not cover impacts of your injury, but only the injury or medical costs directly. Both insurance types can be added to your auto insurance policy, however, MedPay is much cheaper than PIP coverage.
PIP Insurance: The Bottom Line
PIP coverage is one of the auto insurance basics you should know about before buying an insurance policy. Some drivers may require PIP insurance to drive in certain states.
Be sure to check the tables in the previous sections to see which states require PIP. Before you buy PIP coverage, use our free online tool to compare quotes from multiple insurance companies in your area.
Compare quotes from the top auto insurance companies and save!
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
Editorial Guidelines: We are a free online resource for veterans interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance-related. We update our site regularly, and all content is reviewed by auto insurance experts.